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NZD/USD Sticking Close To The 50-Day MA, July Trade Figures On Tap

NZD

NZD/USD isn't too far away from overnight lows, last tracking at 0.6255/60. Dips sub 0.6250 overnight were supported, but a rebound above 0.6310 ran out of steam amidst broad USD strength. Coming up shortly is NZ trade figures for July.

  • There isn't a consensus estimate for the trade data. In terms of June prints, the trade deficit was at -NZ$701mn, as exports (NZ$6.42bn), continued to trail imports (NZ$7.12bn). The 12 month YTD trade deficit remained at historical wides of NZ$10.5bn.
  • Headwinds from the trade position for the NZD may start to dissipate given lower global commodity prices and NZ's re-opening of its borders. Still, there remains a large wedge between its overall current account position and that of Australia's.
  • The AUD/NZD cross got towards 1.1080 overnight, before drifting lower. We are now back at 1.1055, comfortably within recent ranges.
  • For NZD/USD, the 50-day MA comes in at 0.6260, a break below would open up lows from early August around the low 0.6200 region. On the topside we have the low 0.6300 region and then the post RBNZ high around 0.6380 to be mindful of.
  • Note also later today credit card spending figures for July will also print. These don't tend to be a market mover, but for June the MoM rise was +1.3%, while the YoY pace was +3.5%.

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